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Advisor Compensation Issues
Panel Discussion

Advocis Continuing Education
Disclaimer
. This seminar is for educational purposes only.  It should not be 
construed as legal advice by Advocis.
. The presentations are of a technical nature designed for financial 
advisors and planners, and delivered by professionals. The 
printed material received should not be redistributed.
. The advice given or comments made during this presentation by 
the topic experts does not bind Advocis to the validity of the 
content.

Panel Moderator
Jonathan Chevreau
BSc, MA

Editor, 
Moneysense magazine
Ed Skwarek, BA 
LL.B., LL.M.

VP, Regulatory and
Public Affairs 
Advocis

Ken Kivenko, P.Eng
Chair Advisory 
Committee
Small Investor Protection 
Centre

Jonathan Bishop, MA
Research Analyst 
Public Interest Advocacy 
Centre
Robert McCullagh, 
CFP, CLU,CH.FC.,CHS 

Benefit Planners Inc

UK Commission Ban
Investable Assets

Financial Advice

<50,000 £

None

50,000 – 100,000 £

Less

Proficiency requirements for Mutual Funds currently 
too low
Public Interest Advocacy Centre (PIAC)
• Made aware of different comp models and,
• Have choice

CRM I / CRM II – Fee Disclosure
• Greater clarity for clients 
• Increased client / advisor trust

Consider a negotiated fee with client – with a cap?
Embedded Comp provides affordable access to advice
Canadians working with advisors earn 3 times more 
Unbundling of fees will increase cost of advice

Huge confusion in terminology between fee for 
service and fee only

Preet Banerjee Globe and Mail columnist:
When mutual funds are a good idea
Moneysense.ca
If we follow regulatory trends abroad and start 
removing choice from the system, clients will not be 
able to get the advice that they need. 

Regulators need to listen to clients and advisors

Question
• How can fees be lowered for consumers so 
Canadians don’t pay the highest fees in the world?
Question
• You have a comprehensive fee discussion with your 
client, do you believe other advisors provide that 
comprehensive review? Is a lot of the problem due 
to a reluctance by advisors to discuss fees frankly 
with their clients?

Question
• There was no requirement to provide any ongoing 
advice while receiving a trailing commission. What 
advice do consumers get if they have $10,000 in 
mutual funds with an advisor slash dealer?

Question
• The greatest impetus for change is a free, 
competitive market. Do you believe clients have a 
right to choose from a diverse market, advisors have 
a right to offer their services to a free market and 
product manufacturers have a right to compete on a 
free market?
Advisor Compensation Issues
Panel Discussion

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Symposium 2013 segment 1 part 1 panel discussion rev